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Rupee weakens against US dollar on Wednesday

13 Jul 2022 Evaluate
Indian rupee weakened against the US dollar on Wednesday ahead of the highly anticipated June US inflation report, which likely accelerated to a 40-year peak. Moreover, strengthening American currency against major peers overseas and foreign capital outflows also kept investors cautious. Foreign Institutional Investors (FIIs) remained net sellers in the capital market, offloading shares worth Rs 1,565.68 crore on Tuesday, exchange data showed. Yesterday, the rupee had closed at an all-time low of 79.59 against the US dollar. However, rally in the equity markets and easing retail inflation data cushioned rupee’s fall to some extent. Data released on Tuesday showed that Retail inflation in June eased slightly to 7.01% compared to 7.04% in preceding month, but was above the central bank’s tolerance band for the sixth month in a row, signaling more interest rate hikes in future. 

The partially convertible currency is currently trading at 79.67, weaker by 8 paise from its previous close of 79.59 on Tuesday. The currency touched a high and low of 79.6725 and 79.5375 respectively.  

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